Last week a seller running an Iraq store came to me, frustrated that his COD reconciliation didn't add up. Order volume was flat, but profit dropped 8%. The root cause? Exchange rates.
The official IQD rate has stayed at 1,450 per USD. On the black market, it's already around 1,600. When local couriers exchange COD collections at the official rate, your money shrinks by 5–10%. A $100 order becomes $92 in your pocket.
In my experience, don't treat FX as a rare event. Add a 3–5% currency buffer to your pricing. And before signing with a logistics provider, ask which rate they use for settlement. Those who offer market-based rates are worth keeping.
If COD is a large share, open a local IQD account and work with licensed exchange channels. Or push prepaid orders. Every 10% drop in COD lowers your FX risk noticeably.
What's your COD share in Iraq right now?